Drug-maker Cipla has further consolidated its position in the African markets by increasing its stake to take majority control in Ugandan drug-maker Quality Chemical Industries Ltd.
Through its fully-owned subsidiary Meditab Holdings Ltd, Cipla had acquired an additional 14.5 per cent stake in Quality Chemical Industries for $15 million (about Rs 93 crore).
This takes Cipla’s stake up to 51.05 per cent, as Meditab earlier held 36.55 per cent in the company.
The development is its second major in the region. Earlier this year, Cipla completed its acquisition of Cipla Medpro in South Africa, for over Rs 2,700 crore.
Rajesh Garg, Global Chief Financial Officer, said that Uganda was a fast growing market and with a factory that has the required regulatory approvals, it would give Cipla greater access into the sub-Saharan markets.
With majority control, Cipla would also have greater board representation, he added.
